NEW DELHI: Financial year 2016 saw most segments post growth in sales and FY 2017 is expected to be no different for the auto industry.

ETAuto Business Sentiment Survey FY 2017, which was held in May and saw participation by over 1000 respondents, pointed that passenger vehicle segment could well grow between 5 to 8 percent. Even SIAM has forecast that the growth in this segment will be 6-8 percent in FY 17.

The growth in PV segment last fiscal was fuelled by both cars, which grew by 7.8 percent, and also utility vehicles which saw numerous big-ticket launches including Hyundai Creta, Mahindra TUV300, Maruti Suzuki S-Cross and Vitara Brezza. Overall PV segment grew by 7.2 percent in FY 2016.

The ongoing policy changes is expected to bear a significant impact on the sales of passenger vehicles in the coming year. Nearly 62 percent of the respondents of ETAuto survey were of the view that policy changes like additional infrastructure cess and luxury cess will effect the sales in the segment.

One of the surprises that the survey threw forth was the growth expectations in the commercial vehicle segment. While the general perception is that commercial vehicle will grow at good pace in the coming year because of the infrastructure push seen from this government and also the impending implementation of BS-IV emission norms in the coming, survey respondents felt that the growth will be muted in FY 2017.

24.8 percent of the participants said that the growth will stay between 2-5 percent. 19.9 percent people felt the segment will grow between 5-8 percent. Only 16.4 percent felt FY 17 growth rate will be near the FY 16's and will be between 10-15 percent. In FY 16, the CV segment grew by 11.5 percent.

The motorcycle segment too is expected to get back to growth ways as maximum respondents, over one-fourth, said that the growth will be between 8-10 percent in FY 17. In FY 16, motorcycle growth was still reeling in the negative zone at -.24 percent because of the continuous depression in the rural market. Scooters, though, are still the favorites to lead the two-wheeler growth in the ongoing year.

Even the tractor segment has been on the receiving end poor rural offtake in the last two years, However, forecast for good monsoon has brought positive sentiment back for both motorcycle and tractor segment.Most number of participants expect tractor industry to grow by a healthy 5-8 percent in FY 2017.